The SAFE/BECU Mega-Me Merger: What if the "The Numbers" Don't Add Up?

                                  Bull's-Eye? ... or BS?

😎 The SAFE Board is clearly scrambling to justify the giveaway of SAFE Credit Union to Boeing Employees Credit Union in Washington State!

✅ From the SAFE Annual meeting [link] : "Through the combination, it is expected that SAFE members will see a 34% increase*** in the amount of money returned to them when compared to other institutions through lower fees, improved interest rates and more upon completion of this combination, up from $47 million to $63 million annually."

*** The estimated annual member value figure is based on SAFE’s 2024 financial metrics and represents the overall financial advantage members receive compared to other financial institutions. Amounts are rounded and provided for illustrative purposes." 

😎 Let's "parse" that claim by SAFE out!  [* To parse: to analyze a statement to discover its real implications]  

First, let's simplify that claim and eliminate the quantitative gumbo-mumbo-jumbo, which mostly seems intended to confuse, rather than enlighten. Here's the reworded summary:

✔ Simplified wording: After the completion of the merger, SAFE members should expect a 34% increase in the amount of money returned to them - up from $47 million to $63 million annually - based on SAFE’s 2024 financial metrics. [Miss anything? Reread it carefully! Was anything eliminated other than nonsense?]

✔ So, 1) not going to argue with the math - $63 million/$47 million does in fact represent an increase of +34%, nor 2) whether or not the "expected" increase is realistic, nor 3) why use 2024 rather than 2025 as the base year, nor 4) even try to figure out how "other financial institutions" figure into all this, nor ask who those "others" are. [As McCartney said, "Let it Be"].

 ✔ Do need to point out that SAFE's annual reports state: 

2024 -"SAFE paid $34.6 million in dividends to members with savings and checking accounts" - dividends being the main way CUs "return money" to members . [link - page 9]  

2025 - "SAFE paid $67 million in dividends to members with savings and checking accounts. [link - page 12]

✔ If SAFE claims after the completion of the merger, that "the amount of money returned to the members" will jump to "$63 million annually" - should the SAFE member be pleased?

😎  The 2025 annual report states SAFE members  received $67 million in dividends last year. That "expected jump to $63 million upon completion" of the merger may please the folks in Tukwila, but in Sacramento - not so much.

✅ Here's the Credibility Scorecard to date: In prior posts, it has been shown that 1) any benefits of the merger can be obtained for free by SAFE members [link], 2) the SAFE Board has voted to give away a financial institution with a fair market value between $400 to $800 million [link], 3) the current cost of operating SAFE is superior (much lower!) [link], 4) current services/rates at SAFE are equal or better [link], 5) if necessary, there are several better merger candidates in California [link], 6) the "faux-ish" Board commitments of April 21, 2026 [link] and now this questionable "34% increase in money returned to them", and 7) absence of an independent market valuation creates fiduciary breach legal target [link]

😎  Bull's-eye BS!... "for illustrative purposes", only!

   There's more... 

The New SAFE/BECU Mega Merger Meme: Fiduciary Doody?

                                             No Strings Attached? 

The questions continue to grow over the impartiality of the decision by the SAFE Board to cancel the charter of SAFE Credit Union; and, to hand over $4 +billion in California member-assets to Boeing Employees Credit Union of Washington State - for free!  85 years of thriving, homegrown, Sacramento-based success and ownership - up in smoke for no apparent reason.

✔ Now even the propriety of the SAFE Board has been directly challenged [link]. Another concern  added to the mounting list of prior questions. 

✅ Here's the Credibility Scorecard to date: In prior posts, it has been shown that 1) any benefits of the merger can be obtained for free by SAFE members [link], 2) the SAFE Board has voted to give away a financial institution with a fair market value between $400 to $800 million [link], 3) the current cost of operating SAFE is superior (much lower!) [link], 4) current services/rates at SAFE are equal or better [link], 5) if necessary, there are several better merger candidates in California [link], and just added 6) the "faux-ish" Board commitments of April 21, 2026 [link].

😎 If you subscribe to our current "dog-eat-dog, anything goes" financial era, then it is hard to find fault with Boeing Employees Credit Union in this merger. They are getting a steal - literally! That's not surprising, since Boeing Employees Credit Union hired the top merger and acquisition (M&A) consultant in the U.S. - Jefferies [link] - to advise them.This merger is a "pure play" [link] for Boeing Employees Credit Union!

✔ The SAFE CEO and SAFE Board of Directors don't seem to have received equally astute M&A advice - if any - from their consultants on "this deal" - and it shows!  

✅ "Q: Why does a private company - like SAFE Credit Union - need an independent valuation?"  

"A: For private companies without publicly-traded stock, an independent valuation is the only reliable way to get an indication of value.  A value assessment can assist owners with compliance, legal issues of fiduciary duty, developing strategies and goals; and, also help you better understand what is working and what isn’t."

😎 Time to add breach of fiduciary duty as Lucky #7 to the list above?

  Has the SAFE CEO told the Board about their liability in all this? If not, go ahead and make that #8! [link]